Oil & Gas
In April, a report was released which stated that investment in oil & gas had reached a 30 year high. Oil & gas UK’s 2013 activity Survey estimates that investment in the sector will rise from £11.4 billion in 2012 to over £13 billion in 2013. Although this is the highest in recent years, it reflects the cost of inflation experienced within the sector.
Major investments have been made by Statoil (£4.3 billion in Mariner project), Talisman (£1.6 billion to boost production at the Montrose/Arbroath field), GDF Suez (£1.4 billion in the Cygnus gas development) and Dana Petroleum (£1 billion to develop its Harris/Barra fields).
Exploration drilling is expected to rise to around 30-40 wells in 2013 – the highest since 2008. In addition, more than 130 exploration wells are forecast for 2013 to 2015, with 80 percent for 2013 having secured rig slots. Furthermore, the volume of reserves now either in existing reserves or under development is also the highest for six years at 7.4 billion barrel of oil equivalent (BOE).
Lastly, decommissioning expenditure over the rest of the current decade is expected to average £1 billion per year. Plans through to 2040 indicate expenditure reaching around £35 billion in total, of which £31.5 billion will be required to decommission existing installations.
The findings of this report are warmly welcomed by those already supplying to the oil & gas sector, and may also present opportunities for equally equipped companies to get involved.
Read this article in full at: http://www.namtec.co.uk/userfiles/journals/pdfs/515d56754452b.pdf